Consider a Simple Macro Model with a Constant Price Level

question 3

Multiple Choice

Consider a simple macro model with a constant price level and demand-determined output.In the extreme situation where the marginal propensity to spend is one,the simple multiplier is

• A)zero.
• B)a positive number between zero and one.
• C)one.
• D)a positive number greater than one but less than infinity.
• E)infinitely large.

Understanding the concept of operant conditioning and its applications.

Differentiating between types of reinforcements (positive, negative) and punishments (positive, negative).

Identifying effective strategies for modifying behavior using operant conditioning.

Recognizing the significance of discriminative stimuli in operant conditioning.

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Definitions:

Long Run

A period in economics where all factors of production and costs are variable, allowing companies and industries to adjust to market changes.

Aggregate Supply Analyses

The assessment of the total supply of goods and services that firms in an economy plan on selling during a specific time period at different price levels.

Keynesian

Pertaining to the economic theories and policies of John Maynard Keynes, emphasizing the role of government intervention to ensure full employment and stable economies.

Classical

Pertaining to the school of economic thought that emphasizes free markets, free trade, and the idea that economies self-regulate through supply and demand.